Labour-management cooperation in SMEs : forms and factors

Enterprises that place a high priority on the safety and well-being of workers, respect their rights, and engage them fully in the production process are much better positioned to take on the challenges of global markets, increasing competition, and ever more demanding customers. This comprehensive study examines how the labor-management partnership can contribute to increased productivity and competitiveness in small and medium enterprises in developing countries. Using case studies from Botswana, Kenya, Nepal, and the Philippines as a basis, the book fleshes out the existing knowledge with regards to recruitment, staffing, wages and compensation, appraisals, occupational safety and health, grievance procedures, and other human resources management practices. It also examines the growing importance of labor-management cooperation in a globalizing world and highlights numerous "good practices" that have proven effective in small and medium-sized firms.

Author Notes

Tayo Fashoyin is director of the Industrial and Employment Relations Department of the ILO. Emily Sims is a senior specialist at the International Labour Office. Arturo Tolentino was formerly the Vice President of the Philippines.

Preface	p. v
Acknowledgements	p. x
1 Introduction	p. 1
Characteristics of SMEs influencing labour-management cooperation	p. 1
The link between productivity, competitiveness and promotion of decent work in SMEs	p. 3
Labour-management partnership: The source of symbiosis between decent work and enterprise productivity and competitiveness	p. 3
Earlier studies	p. 6
About the case studies	p. 7
General findings of the study	p. 10
Structure of the book	p. 11
2 The growing importance of labour-management cooperation	p. 13
The changing nature of productivity	p. 14
Cooperation as a key source of enterprise competitiveness	p. 16
The link between cooperation and competitiveness	p. 20
3 Forms of communication and cooperation	p. 23
Communication	p. 28
Cooperation	p. 31
4 Human resources management practices and their impact on the development of cooperation	p. 37
Earlier studies on human resources management and employment relations practices in SMEs	p. 37
Formality of human resources policies and practices	p. 38
Recruitment policies and practices	p. 39
Staffing policies and practices	p. 42
Training and development	p. 44
Wages and compensation policies	p. 47
Benefits and other conditions of work	p. 49
The determination of wages and conditions	p. 53
Performance appraisal and the reward system	p. 55
Disciplinary and grievance procedures	p. 56
Occupational safety and health	p. 58
The role of respect for the right to organize in promotion labour-management cooperation	p. 61
Worker organization in the firms studied	p. 63
Membership in employers' organizations	p. 68
Conclusion	p. 68
5 Factors influencing the decision to develop labour-management cooperation in small and medium-sized enterprises	p. 71
External factors	p. 72
Market structure	p. 72
Regulation	p. 74
Certification schemes	p. 75
Other external pressures	p. 79
Internal factors	p. 80
Ownership, financing and management structure	p. 80
Motivation and mission	p. 84
Proximity	p. 86
Business strategy	p. 90
Management strategy and competency	p. 93
Conclusion	p. 95
6 Conclusion	p. 99
Annex: Enterprises studied	p. 103
Bibliography	p. 117

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